On Monday, LVMH said that it has acquired 80% of Loro Piana, an Italian luxury cashmere clothing brand. The deal was priced at Eur2 billion and would boost the French group's presence in the Asian market.

The deal gives Loro Piana an enterprise value of Eur2.7 billion. This is more than 3.8 times than its expected 2013 sales of Eur700 million.

Loro Piana also manufactures integrated fine yarns. The company has an average annual sales growth of 17% in the last three years. According to analysts, this would help make up for the slower growth in other LVMH brands including Louis Vuitton.

Loro Piana made 30% of its sales in Asia. This made it enjoy strong consumer demands in China even as other luxury brands like Gucci and Louis Vuitton have experienced slowdowns. Earlier this year, the company sales is expected to grow little over 10%. This is higher by 13.1% compared to Eur630 million last 2012.